# Net Debt / EBITDA Ratio Calculation for HERA S.P.A. (2022)

## Step 1: Identify the S&P Methodology Components

The S&P methodology for Net Debt / EBITDA uses:
- **Net Debt = Total Debt - Cash and Cash Equivalents**
- **EBITDA = Operating Profit + Depreciation & Amortization**

## Step 2: Calculate EBITDA for 2022 (fiscal year 2022-01-01 to 2023-01-01)

From the data:
- Profit Loss From Operating Activities (EBIT): 533,800,000 EUR
- Amortisation Depreciation And Provisions: 667,100,000 EUR

EBITDA = 533,800,000 + 667,100,000 = **1,200,900,000 EUR**

## Step 3: Calculate Total Debt as of 2023-01-01 (end of fiscal 2022)

S&P considers all interest-bearing debt:
- Noncurrent Financial Liabilities: 5,689,900,000 EUR
- Noncurrent Lease Liabilities: 55,100,000 EUR
- Current Financial Liabilities: 650,100,000 EUR
- Current Lease Liabilities: 21,300,000 EUR

Total Debt = 5,689,900,000 + 55,100,000 + 650,100,000 + 21,300,000 = **6,416,400,000 EUR**

## Step 4: Identify Cash and Cash Equivalents as of 2023-01-01

- Cash And Cash Equivalents: 1,942,400,000 EUR

## Step 5: Calculate Net Debt

Net Debt = 6,416,400,000 - 1,942,400,000 = **4,474,000,000 EUR**

## Step 6: Calculate Net Debt / EBITDA Ratio

Net Debt / EBITDA = 4,474,000,000 / 1,200,900,000 = **3.727**

<answer>3.73</answer>